[sparkles17]

I need to set up medical benefits for 2 employees. I need to deduct $ from there pay to contribute to te health plan. How do I handle in the quickbooks system. Please give a step by step set up for the accounts and what should be debited and credited. My uncles acct is ill and I can't get an answer and need to set this up now. Thankx for all help given

[QBalance Linda]

The following answer demonstrates how to set up a health insurance deduction on a paycheck generated using QuickBooks do-it-yourself, enhanced, or assisted payroll:

Go to the List menu >
Select pr item list >
Custom Set-up >
Choose Deduction >
Enter name for deduction such as "Health insurance Deduction" >
Skip the name of the agency and the number.
For the liabilty account, scroll down and choose
Insurance:health but then add a colon : and type
Employee contribution to Health. Click Next >

Add this account to your chart of accounts >

For Tax tracking type choose NONE if it is not a Section 125 health plan,
If it is a section 125 heath plan, scroll to the bottom of the list and choose
"premium only/125".

For more information about a section 125 plan call your insurance agent. >

Skip the next screen for Taxes (Quickbooks will handle this for you)>

Under the Calculate based on Qty screen choose neither >

Calculate the deduction on Net pay >

In the final screen choose finish.

Next you will need to add this item to the employee's record.
Go to the employee list / or employee center depending on your version
Of QuickBooks>
Select an employee name and right click and choose edit >
In the Change Tabs field select "payroll and compensation" info >
In the Additions, Dedeductions box, add the "Health insurance Deduction"
Item and enter the amount per pay period you would like to withhold (you will
Not need to enter a limit) >
Select OK

You are now ready to prepare payroll. This item should automatically appear on the employees paychecks.